FTL / LTL (Full Truck Load / Less Than Truck Load)
FTL (Full Truck Load) and LTL (Less Than Truck Load) are two fundamental concepts in road freight transport. They describe how cargo space is utilized and the resulting logistical cost structures. While FTL involves the exclusive transport of an entire truck's cargo space, LTL combines multiple shipments from different customers in a single truck.
FTL – Full Truck Load
FTL refers to shipments where an entire truck is used exclusively for a single customer’s goods.
Characteristics of FTL:
- Exclusive cargo space: The entire truck is occupied by one shipment.
- Direct transport: No stops for other customers, minimizing delivery times.
- Efficiency for large shipments: Ideal for heavy or large-volume goods that fill the truck.
- Cost structure: Higher absolute costs than LTL, but lower cost per ton or cubic meter when fully loaded.
Advantages:
- Fast and direct delivery.
- Minimized risk of damage or delays due to transshipments.
- Suitable for time-critical deliveries or large projects (e.g., machinery, industrial goods).
LTL – Less Than Truck Load
LTL refers to shipments where multiple customers’ goods are combined in one truck.
Characteristics of LTL:
- Shared cargo space: Shipments from different customers are consolidated.
- Transshipments possible: Sorting or temporary storage at hubs is common.
- Cost structure: Cheaper for small shipments, as costs are shared among customers.
- Flexibility: Ideal for businesses shipping small quantities regularly.
Advantages:
- Cost-effective for small and medium shipments.
- Reduced empty runs due to optimized space utilization.
- More environmentally friendly due to better truck utilization.
Disadvantages:
- Longer delivery times due to consolidation processes.
- Higher risk of transshipment errors or damage.
FTL vs. LTL Comparison
| Feature | FTL | LTL |
|---|---|---|
| Truck space usage | Exclusive | Shared |
| Transport type | Direct | Transshipments possible |
| Delivery time | Fast | Longer |
| Cost | Higher per truck, often lower per unit | Lower per truck, higher per unit |
| Risk | Low for damage | Higher due to transshipments |
| Suitable for | Large shipments, time-critical deliveries | Small shipments, flexible quantities |
Importance in Modern Logistics
FTL and LTL are crucial for planning and optimizing transport logistics. They directly affect costs, delivery times, service levels, and sustainability. Companies must choose appropriately depending on shipment volume, urgency, delivery frequency, and economic goals.
Modern Transport Management Systems (TMS) and digital tools allow dynamic decisions between FTL and LTL based on real-time capacity, cost analysis, and delivery requirements.